Agreement with Senior Vice-President of Marketing

Exhibit 10.35


October 20, 2004

Mr. B. Ben Baldanza

1225 Stuart Robeson Drive McLean, VA 22101


Dear Ben:


As you know, US Airways, Inc. (" the Company" ) is in the process of implementing its Transformation Plan, which will enable it to compete effectively against the competition, including the increasing number of Low-Cost Carriers (" LCCs" ). A major portion of the Transformation Plan involves reductions in the Company' s employee costs, which means changes in the compensation benefits of all employees, including officers. Specifically, pursuant to the management cost reductions announced on October 4, 2004:

1. effective October 11, 2004, your salary will be reduced by 10%;

2. effective October 11, 2004, the amount contributed to your retirement p ...